Smart Tech Firm Posts Stunning 2023 Results, Analyst Says

SKYX Platforms Corp. (SKYX:NASDAQ) generated record revenue in full-year 2023 (FY23), and in Q4/23, and in the year's final quarter, it secured a large contract and several collaborations, the company announced in a news release. This Florida-based firm provides smart electrification products for residential and commercial uses, has over 90 issued and pending patents, and owns 60 lighting and home décor websites.

"The company came out with stellar results that showed BIG increases in revenue last year and HUGE increases in market penetration and increasingly widespread acceptance of its products," Technical Analyst Clive Maund commented in an April 2 report.

During Q4/23, which ended December 31, 2023, SKYX generated US$22.2 million (US$22.2M), and in FY23, it generated US$58.8M in revenue from sales of its smart home and advanced plug-and-play products. The FY23 figure is materially higher than the company's revenue in FY22, of US$32,022.

"Our year ended December 31, 2023, was highlighted by our first two full quarters of significant revenue, including sales and rollout of our advanced ceiling smart and standard plug and play platform products on many leading U.S. and Canadian websites," management said in the release. "We believe we have accelerated our cadence of sales with a robust gross margin profile, notably managing the cash burn of SKYX."

"The company came out with stellar results that showed BIG increases in revenue last year and HUGE increases in market penetration and increasingly widespread acceptance of its products," Technical Analyst Clive Maund commented

Overall, in 2023, SKYX posted a net loss of US$39.7M, or US$0.45 per share. The prior year, the net loss was US$27M, or US$0.40 per share.

SKYX ended FY23 with US$22.4M in cash, cash equivalents, restricted cash, available cash, and investments available for sale, more than US$16.8M the year before.

"Our e-commerce platform with over 60 websites is expected to provide additional cash flow to the company, which, when combined with our existing cash, we anticipate will be sufficient for 18 months of operations," management said.

Achievements Since October 1

Regarding sales of its products to the residential market, SKYX saw them get into thousands of U.S. residences last year. Recently, the company landed a developer client for which it will supply its advanced smart home platform technologies into 1,000 homes to start and, ultimately, provide approximately 30,000 units for its upcoming projects. SKYX is now selling to the Canadian residential market, too.

SKYX has branched out into the market's retail and professional segments, opening accounts with 100 such customers during the International Builders' Show in Las Vegas and landing sales via its e-commerce lighting and home decor platform. The firm continues to expand sales in both.

SKYX kicked off this year, 2024, by garnering two awards at CES, or the Consumer Electronics Show, for its All-In-One third-generation SKYX Platform. To date, the company's products have won seven CES awards.

Since the start of Q4/23, SKYX has joined forces with four companies to further penetrate each of its target markets. General Electric extended its global licensing partnership agreement with SKYX for five years pertaining to the latter's products. Kichler agreed to include SKYX's plug-and-play technology in its light fixtures and ceiling fans.

Quoizel, a lighting company, manufacturer, and supplier to leading big-box stores, and Golden Lighting, an elegant lighting provider, each agreed to integrate SKYX's products into its online, retail and professional channels.

Creating New Standard

With its products, SKYX Platforms aims to make the new standard for homes and buildings to be safe and smart, the company said. In September of last year, it filed for a mandatory safety standardization with the National Electrical Code for its ceiling outlet receptacle to be used in residential and commercial buildings.

Experts have pointed out SKYX certainly has the technology behind its products to make this happen.

Rick Seidman, chief executive officer of Quoizel, a company with which SKYX is collaborating, said this about it. "In my 32 years in the lighting business, it is by far the most disruptive technology I have seen and will transform the lighting industry from the old existing hardwire installation method to a safe plug-and-play installation method."

Another major advantage for SKYX, noted Technical Analyst Maund, is the size of the potential market for its products. Maund described it as "truly gigantic." In fact, by the end of this year, SKYX expects its products to be in tens of thousands of homes, it said.

As such, Analyst Leo Carpio at Joseph Gunnar & Co. forecasts another significant increase in SKYX's year-over-year revenue in FY2024, he wrote in a 2023 research report. For FY24, he estimates revenue to be US$143.2M (up from US$58.8M in FY23) and earnings per share to be (US$0.02), up from (US$0.45).

Smart Tech Growing

The use of smart technology is growing in the residential and commercial sectors in the U.S. and Canada.

Concerning residential, the smart home technology market in the U.S. should keep expanding, Statista data show. By 2028, market revenue is expected to hit US$55 billion (US$55B), having risen at a 9.7% compound annual growth rate (CAGR) up from US$38.8B in 2024. Also, by 2028, the number of U.S. smart home technology users should reach 785M, reflecting a 118% increase.

As far as Canada, the near-term forecast for the smart appliances market there is also one of growth, at a similar rate, notes Statista. By 2028 market volume is expected to reach US$1.4B, up from US$1B in 2024 and expanding at a 9.82% CAGR. The number of households with smart appliances is projected to be about 4.1M also by 2028.

With respect to commercial, Research and Markets forecasts, the global market for smart buildings is to grow at an 11.6% CAGR between 2022 and 2030 to US$176.9B from US$73.7B. Within the same period, the smart buildings market in Canada is projected to expand at a 10.5% CAGR.

The Catalysts: More Partnerships

In the coming months, SKYX expects to announce it has entered into collaborations with more U.S. companies, it said.

Another catalyst, a bit further out, is SKYX turning cash flow positive, which management anticipates happening next year.

Analysts: Return Potential Significant

Just days ago, Maund recommended SKYX as a Strong Buy, as the stock is thought to be forming a big double bottom at a low level, he wrote, and the recent financial and operational accomplishments are encouraging.

"The latest stunning results show that the company is rapidly advancing on all fronts," he wrote.

Two other analysts rate SKYX Buy: Benchmark Co.'s Michael Legg and Joseph Gunnar & Co.'s Carpio. Given where SKYX is trading today, Legg's target price on the tech company implies a gain of 324% for investors, according to TipRanks. Carpio's target suggests a return of 154%. 

Ownership and Share Structure

According to Reuters, 15 strategic entities own 43.52%, or 42.16M shares, of SKYX Platforms. The three with the greatest stake are KRNB Holdings LLC with 9.44% or 9.14M shares, Motel 7 SQL LLC with 6.32% or 6.12M shares, and Strul Associates LP with 5.69% or 5.51M shares.

Of this group of strategic investors, individual insiders comprise 31.2%, Yahoo! Finance reported. Director Dov Shiff is the insider with the most shares, 16%. Founder and Executive Chairman Rani Kohen owns 10%, and Chief Executive Officer John Campi holds 0.9%.

"Insiders have a US$36M stake in this US$116M business," the Yahoo! article noted. "This shows alignment with  shareholders."

Reuters data show that 77 institutions hold 11.31% or 10.96M shares of SKYX. The Top 3 institutional investors are BlackRock Institutional Trust Co. with 3.5% or 3.39M shares, The Vanguard Group Inc. with 2.48% or 2.41M shares, and Geode Capital Management LLC with 1.21% or 1.17M shares.

Retail investors own the remaining.

SKYX Platforms has 96.17M outstanding shares and 58.71M free float traded shares.

Over the past 52 weeks, the company traded between US$1.08 and US$3.96 per share.

Important Disclosures:

1. Skyx Platforms Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Skyx Platforms Corp.
3. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

For additional disclosures, please click here.

Contributing Author Disclosures:

1. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989.  The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be  only be construed as a recommendation or solicitation to buy and sell securities.